Altice USA said it has completed the planned separation from its European parent, a move intended to simplify the U.S. company and eliminate any investor fears the domestic operation could be liable for its parent’s debt.
Altice first announced its plans to separate in January. The move was made via a special distribution in kind by Altice NV of its 67.2% interest in Altice USA to Altice NV shareholders out of Altice NV's share premium reserve. As a result, Altice N.V. also changed its name to Altice Europe N.V.
In a statement, Altice USA said that following the distribution, there will be 489.4 million shares of Altice USA Class A common stock and 247.7 million shares of Altice USA Class B common stock outstanding.
Altice USA will continue to be headed by CEO Dexter Goei. As part of the deal, Altice USA will increase its board of directors to nine members, adding Altice Europe founder and executive director Patrick Drahi as chairman, Altice USA co-president and CFO Charles Stewart and Altice Europe treasurer Gerrit Jan Bakker.
Alice USA went public last June and although it had an impressive debut – it opened at $30 per share – the stock has dipped about 47% since then on overall competitive pressures and fears that the domestic operation could be liable for its parent debt. The stock was down 1.5% (27 cents each) to $17.38 per share in early trading June 8.